12: Project Procurement and Closure
- Page ID
- 24655
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\(\newcommand{\avec}{\mathbf a}\) \(\newcommand{\bvec}{\mathbf b}\) \(\newcommand{\cvec}{\mathbf c}\) \(\newcommand{\dvec}{\mathbf d}\) \(\newcommand{\dtil}{\widetilde{\mathbf d}}\) \(\newcommand{\evec}{\mathbf e}\) \(\newcommand{\fvec}{\mathbf f}\) \(\newcommand{\nvec}{\mathbf n}\) \(\newcommand{\pvec}{\mathbf p}\) \(\newcommand{\qvec}{\mathbf q}\) \(\newcommand{\svec}{\mathbf s}\) \(\newcommand{\tvec}{\mathbf t}\) \(\newcommand{\uvec}{\mathbf u}\) \(\newcommand{\vvec}{\mathbf v}\) \(\newcommand{\wvec}{\mathbf w}\) \(\newcommand{\xvec}{\mathbf x}\) \(\newcommand{\yvec}{\mathbf y}\) \(\newcommand{\zvec}{\mathbf z}\) \(\newcommand{\rvec}{\mathbf r}\) \(\newcommand{\mvec}{\mathbf m}\) \(\newcommand{\zerovec}{\mathbf 0}\) \(\newcommand{\onevec}{\mathbf 1}\) \(\newcommand{\real}{\mathbb R}\) \(\newcommand{\twovec}[2]{\left[\begin{array}{r}#1 \\ #2 \end{array}\right]}\) \(\newcommand{\ctwovec}[2]{\left[\begin{array}{c}#1 \\ #2 \end{array}\right]}\) \(\newcommand{\threevec}[3]{\left[\begin{array}{r}#1 \\ #2 \\ #3 \end{array}\right]}\) \(\newcommand{\cthreevec}[3]{\left[\begin{array}{c}#1 \\ #2 \\ #3 \end{array}\right]}\) \(\newcommand{\fourvec}[4]{\left[\begin{array}{r}#1 \\ #2 \\ #3 \\ #4 \end{array}\right]}\) \(\newcommand{\cfourvec}[4]{\left[\begin{array}{c}#1 \\ #2 \\ #3 \\ #4 \end{array}\right]}\) \(\newcommand{\fivevec}[5]{\left[\begin{array}{r}#1 \\ #2 \\ #3 \\ #4 \\ #5 \\ \end{array}\right]}\) \(\newcommand{\cfivevec}[5]{\left[\begin{array}{c}#1 \\ #2 \\ #3 \\ #4 \\ #5 \\ \end{array}\right]}\) \(\newcommand{\mattwo}[4]{\left[\begin{array}{rr}#1 \amp #2 \\ #3 \amp #4 \\ \end{array}\right]}\) \(\newcommand{\laspan}[1]{\text{Span}\{#1\}}\) \(\newcommand{\bcal}{\cal B}\) \(\newcommand{\ccal}{\cal C}\) \(\newcommand{\scal}{\cal S}\) \(\newcommand{\wcal}{\cal W}\) \(\newcommand{\ecal}{\cal E}\) \(\newcommand{\coords}[2]{\left\{#1\right\}_{#2}}\) \(\newcommand{\gray}[1]{\color{gray}{#1}}\) \(\newcommand{\lgray}[1]{\color{lightgray}{#1}}\) \(\newcommand{\rank}{\operatorname{rank}}\) \(\newcommand{\row}{\text{Row}}\) \(\newcommand{\col}{\text{Col}}\) \(\renewcommand{\row}{\text{Row}}\) \(\newcommand{\nul}{\text{Nul}}\) \(\newcommand{\var}{\text{Var}}\) \(\newcommand{\corr}{\text{corr}}\) \(\newcommand{\len}[1]{\left|#1\right|}\) \(\newcommand{\bbar}{\overline{\bvec}}\) \(\newcommand{\bhat}{\widehat{\bvec}}\) \(\newcommand{\bperp}{\bvec^\perp}\) \(\newcommand{\xhat}{\widehat{\xvec}}\) \(\newcommand{\vhat}{\widehat{\vvec}}\) \(\newcommand{\uhat}{\widehat{\uvec}}\) \(\newcommand{\what}{\widehat{\wvec}}\) \(\newcommand{\Sighat}{\widehat{\Sigma}}\) \(\newcommand{\lt}{<}\) \(\newcommand{\gt}{>}\) \(\newcommand{\amp}{&}\) \(\definecolor{fillinmathshade}{gray}{0.9}\)- 12.1: Identifying the Need for Resources Outside the Organization
- This page examines decision-making in project procurement, focusing on outsourcing versus self-performing work in construction. It identifies key factors such as cost, schedule, risk, quality, and flexibility. An example illustrates how a New York construction project outsourced standard materials for efficiency while assessing complex methods for either outsourcing or self-performance. The overall process involves analyzing trade-offs to select the optimal procurement strategy.
- 12.2: Procurement Plan
- This page discusses the Request for Proposal (RFP) process, highlighting the importance of vendor creativity and skill alignment. It suggests forming partnerships to address skill gaps and enhance collaboration for project success. The text also touches on procurement terminology, differentiating between RFPs and Requests for Quotations (RFQs), and emphasizes the need for strategic supplier relationships.
- 12.3: Selecting the Type of Contract
- This page examines factors influencing contract selection in procurement, emphasizing fixed price and cost reimbursable contracts. It discusses the importance of scope, risk management, and milestones while detailing various contract types—fixed total cost, fixed price with incentives, and time and materials contracts. The text highlights the need for effective change management to reduce conflicts, outlining how different contracts manage costs and incentives.
- 12.4: Procurement Process
- This page outlines the procurement cycle, detailing activities from purchase decisions to contract closure, including planning, bidder qualification, and contract management. It emphasizes the need for effective contract oversight, especially for long lead items, and the importance of collaboration between contractors and project managers.
- 12.5: Project Closure
- This page emphasizes the importance of project closeout celebrations in recognizing contributions and fostering team bonding. Such events enhance satisfaction among team members and clients, alleviating sadness associated with project completion. They provide a platform for sharing lessons learned, discussing improvements, and archiving significant documents.
- 12.6: Exercises
- This page presents exercises designed to deepen understanding of key concepts, including essay questions on RFPs, procurement task assessment, and quality evaluation via post-project reviews. It encourages discussion on document retention standards and personal experiences with conflict resolution in projects, promoting collaborative learning and diverse perspectives among students.
- 12.7: Web Exercises
- This page outlines the steps for documenting D&B financial ratings, including the analysis of various scores such as PAYDEX and financial stress scores, which indicate a company's creditworthiness and risk of failure. It emphasizes the need for capturing a business size designation table, analyzing specific ratings, and ensuring submission meets rubric requirements.